Volkswagen China, the Chinese arm of carmaker Volkswagen AG, has announced its decision to recall an unspecified number of cars to fix potential issues with the vehicles’ direct-shift gearbox systems.

The announcement of the recall was made after it received a notification from China’s quality watchdog, which reportedly found substandard direct-shift gearbox systems in the vehicles.

The substandard gearbox systems can cause unintentional acceleration, which can cause accident.

Towards the conclusion of the 2012 Paris Motor Show, German automaker Volkswagen (VW) unveiled the first images of its seventh-generation Golf hatchback --- a re-engineered model boasting a evolutionary appearance, thanks to the new MQB - modularen querbau, or modular transverse - platform on which it is based.

The new 2013 Golf - scheduled to hit the European markets in November, and the US markets in about a year from now - has notably sharp looks, premium interiors, economical new gasoline and diesel powertrains, as well as top-of-the-class safety features of its mainstay hatchback.

A changed price list of new Jetta has been announced by the automaker Volkswagen. The Tsi petrol car with 1.4 liter engine is now going to cost the customers starting from £16,960. At this price it is lesser than VW Golf.

The other option present for the car buyers will be that Vetta will be available in both diesel and petrol. Capacity of diesel is going to be TDI engine (104bhp 1.4-litre or 138bhp 2.0-litre), while for that in case of petrol it would be (1.4- litre TSI with 120bhp or 158bhp).

This Tuesday, Volkswagen AG has launched a new car called Volkswagen Jetta. The new car is larger and economical than the earlier model.

The new economical model has been launched in the wake of tough competition from Asian Companies.

The car was launched at Times Square in New York. Live billboards were a part of the occasion which also featured singer Katy Perry as she sang her hit numbers, including “I Kissed a Girl” and ‘California Gurls’.

Volkswagen unveiled the latest version of its seven-seat Touran MPV at the Leipzig Motor Show in Germany.

The new version that gained design directions from the Polo, Golf and Touareg boasts a fresh look as well as new technology.

The new Touran comes with new grille, LED tail lights, tailgate, front bumper and rear bumper. The vehicle also got new alloy wheels and chrome-edged rubbing strips.

Apart from the current 138bhp 1.4-litre petrol engine, a new entry-level 104bhp 1.2-litre petrol engine will also be made available.

The German auto giant Volkswagen announced that it would buy 19.9 per cent stake in Japanese car maker Suzuki Motor for $2.5 billion.

On the other hand, Suzuki will purchase shares in Volkswagen worth up to half the amount the German automaker buys.

The two car makers announced in a joint statement that they reached a common understanding to establish the partnership.

Suzuki owns 54 per cent stake in India’s biggest car maker Maruti Suzuki Ltd.

Shareholders of Volkswagen AG have overwhelmingly approved a plan to increase capital via issuing up to 135 million new shares, a move that will strengthen company's financial position for the planned takeover of Porsche.

98.7 per cent of Volkswagen shareholders voted in favour of the capital increase at an extraordinary meeting in Hamburg on Thursday.

Commenting on the topic, Volkswagen said, "The path is now free for a planned capital increase in the first half of 2010 with subscription rights for all shareholders."

Volkswagen, Europe's biggest carmaker, and luxury auto manufacturer Porsche have finally approved a plan to merge by 2011.

The move will create an automotive giant, which includes ten major brands - including Volkswagen, Porsche, Audi and Skoda.

Under the terms of the agreement, Volkswagen will pay up to 3.3 billion euros for the stake by the end of 2009 and issue new preferred shares sometime in the first half of
2010 to finance the deal.